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NEW QUESTION: 1
Copybold Corporation is a start-up firm considering two alternative capital structures--one is conservative and the other aggressive. The conservative capital structure calls for a D/A ratio = 0.25, while the aggressive strategy call for D/A = 0.75. Once the firm selects its target capital structure it envisions two possible scenarios for its operations: Feast or Famine. The Feast scenario has a 60 percent probability of occurring and forecast EBIT in this state is $60,000. The Famine state has a 40 percent chance of occurring and the EBIT is expected to be $20,000. Further, if the firm selects the conservative capital structure its cost of debt will be 10 percent, while with the aggressive capital structure its debt cost will be
12 percent. The firm will have $400,000 in total assets, it will face a 40 percent marginal tax rate, and the book value of equity per share under either scenario is $10.00 per share. What is the difference between the EPS forecasts for Feast and Famine under the aggressive capital structure?
A. $1.00
B. $2.20
C. $0
D. $1.80
E. $2.40
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Debt = 75% = $300,000; Equity = 25% = $100,000; Total assets = $400,000.
FeastFamine
Probability0.60.4
EBIT$60,000$20,000
Less: Interest36,00036,000
EBT$24,000-$16,000
Less: Taxes9,600-6,400
NI$14,400-$9,600
# shares10,00010,000
EPS$1.44-$0.96
Difference in EPS for conservative capital structure:
EPS(Feast) - EPS(Famine) = $1.44 - (-$0.96) = $2.40

NEW QUESTION: 2
You are the Cisco Network Designer in P4S. Which two
settings must be configured in order to use the GUI to configure Call Admission Control with voice applications? (Choose two.)
A. WMM must be enabled
B. QoS must be set to Gold
C. QoS must be set to Silver
D. QoS must be set to Platinum
Answer: A,D
Explanation:
Section: (none)
Explanation/Reference:

NEW QUESTION: 3
You want to move all objects of the APPS user in the test database to the DB_USR schema of the production database. Which option of IMPDP would you use to accomplish this task?
A. REMAP_TABLESPACE
B. FULL
C. REMAP_SCHEMA
D. TRANSFORM
E. SCHEMAS
Answer: C
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 4
When a law enforcement agent induces the commission of an offense, the process is called:
A. Accessory before the fact
B. Misprision of a felony
C. Entrapment
D. Corpus delecti
E. Stare decisis
Answer: C